Dubai court voids luxury car sale after Interpol alert, orders Dh600,000 refund

A Dubai civil court has annulled the sale contract of a luxury vehicle and ordered the selling company to refund Dh600,000 to the buyer, after it was established that the car was internationally wanted by Interpol, rendering the subject of the contract unlawful.

The ruling followed a civil lawsuit filed by a man of Arab nationality, who sought to recover Dh720,000, along with court fees, expenses and legal costs, after purchasing a vehicle that was later seized because it was subject to an international alert. The seizure deprived him of possession and use of the car.

According to court records, the dispute dates back to October this year, when the claimant bought a used 2023 Mercedes-Benz from a company specialising in luxury vehicles under a sales contract valued at Dh670,000. He paid Dh200,000 upfront, while the remaining amount was financed through a bank, which took the vehicle as collateral.

The claimant told the court that after taking possession of the car and approaching Dubai’s Roads and Transport Authority to register ownership, he received an official notification stating that the vehicle was wanted by Interpol and subject to a report prohibiting its sale or registration. He then contacted the police, where it was confirmed that the car was listed under an international circular and was subsequently confiscated, resulting in the complete loss of possession and benefit.

He said he had fulfilled all his contractual obligations in good faith, paid part of the purchase price, and incurred additional expenses of Dh50,000 related to the vehicle. Despite its seizure, the financing bank continued to deduct monthly instalments, causing him significant financial and moral harm. He requested the annulment of the contract, reimbursement of all amounts paid and compensation for damages.

After examining the case, the court concluded that the vehicle had been stolen and internationally wanted prior to the signing of the sales contract, making it unlawful to trade. This, the court ruled, led to the nullification of the contract due to the absence of a lawful subject, regardless of whether the selling company acted in good faith or was unaware of the vehicle’s status.

The court ordered the defendant company to pay Dh600,000 to the claimant and to bear court fees and expenses, while dismissing all other claims.